The IMF predicts borrowing costs will fall back once high inflation is brought under control.
Interest rates in major economies are expected to fall to pre-pandemic levels because of low productivity and ageing populations, according to a forecast.
The Bank of England has been raising interest rates since December 2021, taking them from 0.1% to 4.25%.Central banks in the UK, the US, Europe and other nations have been lifting interest rates to combat the rate of price rises, otherwise known as inflation. The Washington-based financial institution said low productivity as well as ageing populations will act as an anchor to inflation.
"The amount that you spend relative to your income is highest when you're in your 20s, 30s and 40s - often that's maybe young families, when you've got households forming, you've got couples coming together, they tend to spend the most when they decorate and buy a car or whatever, and you as you get older in life you slow down your consumption," he said.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Interest rates will return to low pre-pandemic levels, new IMF analysis predictsEconomists at the IMF said that, once inflation was brought back under control, real interest rates were likely to return towards pre-pandemic levels
Read more »
Ultra-low interest rates set to return, IMF saysA report found that the hike in inflation sparked by the pandemic is likely to be a blip rather than a permanent shift in the global financial climate.
Read more »
What to expect at this week’s IMF and World Bank meetings\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Read more »
Liverpool now 'favourites' to sign Premier League midfielder despite Man Utd, Chelsea interestLiverpool have emerged as the club best placed to land Brighton midfielder Alexis Mac Allister in the summer transfer window, according to reports...
Read more »
Christine McGuinness says love interest 'must share similarity' with ex PaddyChristine has spoken out on her dating life after splitting with her TV presenter ex-husband Paddy McGuinness and said any new man in her life 'must share similarity' with the Top Gear host.
Read more »
A comparison of death rates associated with COVID-19 versus influenza during fall-winter 2022-23A comparison of death rates associated with COVID-19 versus influenza during fall-winter 2022-23 JAMANetwork STLOUISVA VASTLResearch covid COVID19 SARSCoV2 influenza outbreak publichealth deathrates news research
Read more »